
EUR/GBP Short term count - Limited downside potential
The complex double zig-zag correction from 0.8400 should be close to an important bottom. As long as minor resistance at 0.8220 and more importantly as long as resistance at 0.8247 protects the upside, wave 2 could move a little lower towards 0.8186, but the potential downside risk from here is limited. Remember that Elliott's rule no. one says, that wave 2 isn't allowed to break below the starting point of wave 1, which in this case is at 0.8156.
However, a break above 0.8220 and more importantly a break above 0.8247 will open up the upside potential to 0.8600 and maybe even higher as wave 3 develops making the upside potential very interesting from here.